Enters the Euro: Implications for Latin America and the Caribbean

CEPAL-SERIES "Estudios y Perspectivas", Mexico, 2004

69 Pages Posted: 23 May 2008 Last revised: 25 Mar 2009

See all articles by Hubert Escaith

Hubert Escaith

Independent; World Trade Organization (WTO)

Carlos Quenan

IHEAL

Date Written: 2004

Abstract

The creation and introduction of the euro on 1 January 1999 was one of the most important economic events of the end of the twentieth century. The paper shows that financial linkages between Europe and Latin America may be the most relevant for Latin America. Exchange rate policy will also be affected as large swings in bilateral exchange rate between the US Dollar and euro were already anticipated at the time of writing the report.The medium- to long-term consequences of an increasingly bipolar but asymmetrical international monetary system will have to be included in the Latin America national exchange rate policies, enhancing, inter alia, the possibility of adopting anchor baskets. This paper in French revises and updates the original version in Spanish, 2003 (also available from SSRN).

Keywords: Latin America, Caribbean, trade and finance

JEL Classification: F02, F13, F15, F21, F36

Suggested Citation

Escaith, Hubert and Quenan, Carlos, Enters the Euro: Implications for Latin America and the Caribbean (2004). CEPAL-SERIES "Estudios y Perspectivas", Mexico, 2004, Available at SSRN: https://ssrn.com/abstract=1136141 or http://dx.doi.org/10.2139/ssrn.1136141

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Carlos Quenan

IHEAL ( email )

University of Paris III Sorbonne Nouvelle
Paris, 75
France